Marlene will receive $5,000 in the insurance settlement.
<h3>What is an insurance settlement?</h3>
An insurance settlement is an indemnity or compensation that the insurance company pays to the insured to settle an insurance claim according to the insurance policy guidelines.
<h3>Data and Calculations:</h3>
Property value = $120,000
Homeowner's coverage = $40,000
Estimated damage = $12,000
Standard coinsurance requirement threshold = 80%
Expected insurance coverage = $96,000 (120,000 x 80%)
Co-insurance penalty = 41.67% ($40,000 / $96,000 x 100)
Indemnity = $5,000 ($12,000 x 41.67%)
Thus, Marlene will receive $5,000 in the insurance settlement.
Learn more about insurance indemnity at brainly.com/question/8025172
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